PwC comments on the Bank of England's New Bank Start-up Unit launch

Published at 11:17 AM on 21 January 2016

Commenting on the announcement regarding the Bank of England’s launch of a New Bank Start-up Unit, Darren Meek, PwC's challenger banks leader, said:

"This announcement has reconfirmed the UK Government's commitment to enhancing competition in financial services, and we welcome the proposals.

"We believe that a faster, more transparent and predictable authorisation process will be particularly helpful. Greater clarity on what firms can expect in the early days post authorisation and thereafter under the PRA's 'proportionate' application of the regulatory framework will encourage further investment into the industry.

"However, improvements to the authorisation process are not a panacea for the structural market challenges being faced. There is still a large amount of inertia being experienced in the UK current account market - only 3% of customers switched in 2014.

“If competition is to be effectively stimulated and accelerated, the well-publicised potential capital requirements disadvantages faced by the challenger banks under proposed European rules will also require greater specific action on the part of the Government."

ENDS

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At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with more than 208,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.